The Human Resources Department was recently tasked with researching, analyzing and recommending one or more new compensation programs for 3W Manufacturing, Inc. Compensation is a key driver in employee satisfaction and performance in any industry, but is fundamentally important within our manufacturing niche, as competition for top level employees is fierce. With compensation being such an important aspect of employee benefits, hiring and retention, Human Resources took considerable time to research numerous compensation strategies that could be implemented at 3W Manufacturing. After considerable deliberation, Human Resources determined the top three options for compensation at the company going forward: Base Salary (Only); Pay for Performance; and Longevity Pay. It is the belief of the department that the business will require a combination of these pay structures to maintain a healthy workforce and continue to recruit new talent into the organization.

Introduction The purpose of this report is clearly explain the research the Human Resources Department conducted to definitively recommend a compensation strategy to move forward with at 3W Manufacturing. It is important to understand the broad scope of compensation programs that exist, not only in the manufacturing industry but also in the global business world. Compensation is a key driver in employee motivation, performance and satisfaction. It is also plays a key role in the recruitment of top level talent and in the retention of the best performing employees currently with the company. In order to continue to improve as a company and be able to maintain and develop the best workforce possible, it became evident that the need for a new compensation strategy was necessary. While conducting this research, it became evident to Human Resources that the three types of compensation structure most